Should Value Investors Buy Cardinal Health (CAH) Stock?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.One stock to keep an eye on is Cardinal Health (CAH). CAH is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 15.48, while its industry has an average P/E of 17.30. Over the past 52 weeks, CAH's Forward P/E has been as high as 20.15 and as low as 13.69, with a median of 15.30. We also note that CAH holds a PEG ratio of 1.24. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CAH's industry currently sports an average PEG of 1.73. Over the last 12 months, CAH's PEG has been as high as 1.88 and as low as 1.22, with a median of 1.49.Finally, investors should note that CAH has a P/CF ratio of 15.27. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CAH's P/CF compares to its industry's average P/CF of 18.65. Within the past 12 months, CAH's P/CF has been as high as 17.47 and as low as 12.96, with a median of 15.12.CONMED (CNMD) may be another strong Medical - Dental Supplies stock to add to your shortlist. CNMD is a Zacks Rank of #2 (Buy) stock with a Value grade of A.CONMED is trading at a forward earnings multiple of 10.69 at the moment, with a PEG ratio of 1.62. This compares to its industry's average P/E of 17.30 and average PEG ratio of 1.73.CNMD's price-to-earnings ratio has been as high as 16.97 and as low as 10.31, with a median of 13.21, while its PEG ratio has been as high as 1.92 and as low as 0.68, with a median of 1.32, all within the past year.CONMED sports a P/B ratio of 1.54 as well; this compares to its industry's price-to-book ratio of 4.99. In the past 52 weeks, CNMD's P/B has been as high as 2.67, as low as 1.47, with a median of 1.91.These figures are just a handful of the metrics value investors tend to look at, but they help show that Cardinal Health and CONMED are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CAH and CNMD feels like a great value stock at the moment.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cardinal Health, Inc. (CAH): Free Stock Analysis Report CONMED Corporation (CNMD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks